Tuesday, August 5, 2014
Confidentially Selling a Florida Business: Top 4 Things to Consider
There are many benefits to using a Florida Business Broker to sell a business which include allowing the owner to continue to focus on the operation of the business while the broker acts as an intermediary in a negotiation process. Although by far, one of the greatest benefits for both Buyer and Seller, for using a Florida Business Broker is to keep the transaction confidential. Some business owners think it might be easy for them to sell their business but maintaining the confidentiality of the sale can be near impossible in a “for sale by owner” situation. Confidentiality is important for a number of reasons and it will not only help to make a smooth transition but a healthy business can usually obtain a greater asking price. The top 4 things to consider when confidentially selling a Florida Business include:
Confidentiality in the sale of a Florida business can be critical for the continued successful operation of a business. A Seller needs to protect the assets of the business and for some businesses that could mean the employees. Employees are often the backbone of a business and most buyers recognize the importance of employee retention. Employees with rumors of a sale or prematurely discussing a possible sale can be damaging to a business. Uncertainty causes uneasiness among employees, which could affect productivity or even loss of personal. This should be avoiding at all cost and there is always a proper time to notify the employees.
Another area that is usually key for confidentiality in the sale of a business is with the company vendors. Again these relations can become uneasy and premature announcement of a possible sale should be avoided. Suppliers may start to fear the loss of a customer or worse yet, a lack of payment from a seller. This could mean the tightening of the supply chain or on the terms in which goods or services are provided. A seller may find himself suddenly paying COD on accounts that have been offering terms or could possibly start having trouble getting hard to find items or goods and services that are in short supply. Any one of these of which could be damaging to a business and create difficulties with a sale or transition.
The customer base is another important business asset that can be jeopardized with an announcement of a Florida business for sale. Confidentiality with customers is essential and the customers should be the second to last to know about any business sale. Again customers can feel uneasy with the sale and will begin to wonder: Will they have the same salesperson or favorite waitress? Will the product be the same? Will the prices be going up? Uncertainty in the minds of the customers could prompt them to start shopping not only the product but also the price. Buyers will want to make the transition for customers as seamless as possible. Customer retention for a buyer, could be more important than employee retention, although often customer retention can be greatly influence by the employee retention.
A Florida business for sale can become vulnerable if a competitor finds out a business is on the market. There is no doubt, with the possible exception of a confidentially orchestrated approach by a Florida Business Broker that the competition should be the last to know a particular business is on the market. An open announcement of a Florida business for sale puts that business at risk. If a competitor can steal the key employees, grab the top customers and negotiate a better price with the vendors there would be no reason for them to buy that company. Furthermore after a competitor fully takes advantage of the situation it could turn out there is nothing left for anyone else to buy, either. This is exactly why confidentiality is such an important benefit of using a Florida Business Broker.
Florida Business Brokers know how to confidentially market and sell Florida businesses. Through confidential marketing methods and the utilization of non-disclosure or confidentiality agreements they are able to reach buyers and sellers from around the world in order to complete Florida business for sale transactions. Visit us here for more information about confidentially selling a Florida business.